Archive · 27 Aug 2026
Why Global Aircraft Lessors Remain Wary of Indian Airlines
Aircraft leasing companies rent planes to airlines instead of selling them.
When an airline in India fails, lessors can have difficulty getting their planes or money back.
The SpiceJet case has brought this concern back into focus.
The earlier Go First collapse showed how long the process can take.
Go First left 54 aircraft at airports in India in 2023.
Many planes needed repairs, engines, paperwork, and new safety approvals before they could leave.
Courts and insolvency rules also delayed repossession efforts.
Because lessors see India as riskier, they charge Indian airlines more to rent planes.
Those extra costs can eventually lead to higher ticket prices.
Repeated airline bankruptcies and repossession delays have made India a higher-risk leasing jurisdiction.
SpiceJet's deferred insolvency case has renewed concerns about recovering dues and repossessing aircraft.
Go First left 54 aircraft across nine Indian airports after grounding on May 3, 2023.
Fifty-three Go First aircraft have since left India, while one remains in Delhi.
Higher leasing costs linked to jurisdictional risk are ultimately passed on to passengers through fares.
- Who
- Global aircraft lessors, Indian airlines, SpiceJet, and Go First are central to the issue.
- What
- Aircraft lessors face difficulties recovering unpaid dues and repossessing leased aircraft from insolvent Indian airlines.
- When
- The issue is highlighted by the ongoing SpiceJet case and the Go First collapse beginning May 3, 2023.
- Where
- The disputes and aircraft recoveries have taken place in India, including across nine airports where Go First aircraft were parked.
- Why
- Insolvency moratoriums, court proceedings, maintenance problems, missing engines, documentation, and airport dues can delay aircraft recovery.
- Go First grounding date
- May 3, 2023
- Go First aircraft affected
- 54 aircraft were left across nine Indian airports.
- Aircraft recovered
- Fifty-three Go First aircraft have left India, while one remains in Delhi.
- Largest Go First parking location
- Delhi held 23 aircraft, followed by Bengaluru and Mumbai with nine each.
- Aircraft departures
- Twenty-nine aircraft left India in 2024, 19 in 2025, and five in 2026, according to the article.
- Legal framework
- The article says India's Cape Town Convention commitments were subsequently ratified through the Protection of Interests in Aircraft Objects Act, 2025.
- Industry impact
- The leasing risk premium affects Indian carriers including IndiGo, the Air India group, and Akasa Air.